Question

Fey Company’s organization chart includes the president; the vice president of production; three assembly plants—Dallas, Atlanta, and Tucson; and two departments within each plant—Machining and Finishing. Budget and actual manufacturing cost data for July 2017 are as follows.

Finishing Department—Dallas: direct materials $41,050 actual, $44,680 budget; direct labor $83,110 actual, $83,870 budget; manufacturing overhead $52,120 actual, $51,130 budget.

Machining Department—Dallas: total manufacturing costs $220,130 actual, $216,870 budget.

Atlanta Plant: total manufacturing costs $424,810 actual, $422,130 budget.

Tucson Plant: total manufacturing costs $494,840 actual, $496,570 budget.

The Dallas plant manager’s office costs were $96,120 actual and $93,480 budget. The vice president of production’s office costs were $134,790 actual and $132,090 budget. Office costs are not allocated to departments and plants.

Prepare the reports in a responsibility system for: The plant manager—Dallas.  (List departments in alphabetical order, e.g. Finishing, Machining.)

Prepare the reports in a responsibility system for: The vice president of production. (List assembly plans in alphabetical order, e.g. Atlanta, Dallas.)

Answer 1